Council taxpayers are subsidising a Teesside town hall restaurant to the tune of #35,000 a year, claims a councillor.

Council taxpayers are subsidising a Teesside town hall restaurant to the tune of #35,000 a year, claims a councillor.

And she has accused leading Labour councillors of interfering in a plan to raise prices and cut losses in the restaurant in Redcar and Cleveland Council's Town Hall at Eston.

Conservative Councillor Val Halton said the council's catering operation had lost #340,000 in 2000/01. Last April it was transferred to the education department and the losses were being cut.

"But the council's Executive is undermining these efforts," she said.

"The loss in the Town Hall restaurant is #35,000 a year - almost #3,000 a week which is paid by the council taxpayers. Why?

"It is used by staff who are paid good wages and councillors who are paid allowances. How can this be justified?" Cllr Halton told a full meeting of the council.

She said the council's Executive had interfered with the day-to-day running of the restaurant by partly reversing price increases aimed at cutting the losses.

The cost of a standard main course in the restaurant had gone up from #1.70 to #2.40 but was later cut back to #2.

Councillor Dave McLuckie, lead councillor for community safety, said when the price increase was first imposed the revenue taken in the till fell to such a level that the restaurant would have become non-viable.

Ian Jeffrey, lead councillor for lifelong learning, said further improvements would be made in the catering area. Efforts were being made to increase the take-up of school meals and when that happened it would provide a more sound base to the catering service.

Council leader Dave Walsh said: "The opposition groups have lost the plot on financial planning."

Keith Pudney, lead councillor for Best Value, said a review was taking place and an action plan would be produced to tackle the issue.

Councillor Sam Tombe said: "Many people have to travel miles each day to get to work and you can't expect them to bring sandwiches every day. We are providing a decent, normally-priced meal. Are you going to give them a bowl of porridge? They are employed by the local authority and not the local prison."